Spring statement live: Reeves hit by economic growth downturn as she unveils £14bn budget and welfare cuts

The budget watchdog has cut its economic growth forecast in half as Chancellor Rachel Reeves announced £14bn in budget and welfare cuts in her spring statement, citing increased global uncertainty. The Office for Budget Responsibility now predicts GDP growth in 2025 to be just 1% instead of 2%. Despite limited room for maneuver due to tight borrowing rules and no plans to increase major taxes, Reeves pledged £2.2bn for defense and cut aid while facing criticism from the shadow chancellor for being “reckless” with fiscal headroom and “tanking the economy.”

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